Is Buying A Bot Really Worth Your Money?
“My bot makes 500% of your initial capital in a month.” “My bot never blows accounts, and it trebles your every week.” “This bot can make you six figures in a year.” You have probably come across one of these statements before. If all these claims were true, that these bots were programmed in such ways to make consistent profits in all market conditions then the people who sell these bots should be billionaires or at least care less about the $50.78 we pay to get the bots.
Not to refute the idea that a bot can be profitable at times, in specific market conditions, the idea that a bot can be profitable 24/7 is just but a dream that is being sold by people who are looking to make money through selling their bots rather than using their bots to trade. I would not even be surprised to learn that these guys do not even use their bots to trade live funds.
Some bots do work. But it is not just a matter of opening your mt4 or mt5 and put start your bot and it is already working. They work just like any other trading strategy, with underlying conditions. Now, these cannot be said explicitly to clients as they will discourage you from giving them your hard-earned money.
The truth is the automation trading that works is the one that needs you to understand the bot that you are using fully, understand the underlying market conditions, do some background work on whether the bot will function profitably with the current broker spreads and commissions, and other checks as well. This may come as bad news for those people who thought that they could just plug in their bots and earn with no extra work. You are not alone if you thought so too. That is a dream that is sold to traders a lot in order to profit the bot provider.
If ever there will be a bot that will be designed that will just plug and earn in any underlying market conditions then it will never be in the streets for a couple of hundreds of dollars. This is because for such code to be out in a single bot it will not only need top programmers but a lot of them and only a large institution can be able to develop such. And even if it does, it will not focus on selling the bot, rather it will focus on making millions using its priced asset.